Yesterday Anadarko Petroleum Corporation (NYSE: APC) announced its Shenandoah-2 well in the deepwater Gulf of Mexico encountered more than 1,000 net feet of oil pay in multiple high-quality Lower Tertiary-aged reservoirs. In the view of analysts at Deutsche Bank the implication is a major deepwater discovery for the industry with upside implications for the stocks.

Analyst Ryan Todd said, "Having already credited both CIE (NYSE: CIE) and APC NAVs for the resource associated with the initial discovery well at Shenandoah, the market will now likely de-risk additional upside to 500 mmboe in a most likely (Pmean) case with resource upside to 1,000 mmboe (P10) in the upside scenario. By our calculations, this methodology implies $1.80/shr and $2.75/shr of incremental value for CIE and APC based on today's disclosure, with upside (total estimated value for CIE and APC is $3.10/shr and $4.10/shr, respectively). For reference, every additional 100 mmboe of resource upside would equate to an estimated $0.60/shr for CIE and $0.80/shr for APC."